Ascendas will initially invest 2.6 billion rupees via listed non-convertible debentures and the remainder by taking a stake in a Paranjape unit developing a commercial project in the western city of Pune close to the financial capital of Mumbai.

Overseas investors are betting on a revival in India's commercial real estate space after the Narendra Modi-led government paved the way for listing Real Estate Investment Trusts earlier this year to help cash-strapped developers.

Foreign investors, including Blackstone Group, Goldman Sachs, and Singapore sovereign wealth fund GIC, had invested about USD 1.5 billion in India's real estate sector as of December 12, according to data from Venture Intelligence. About a third of that investment was in commercial real estate.